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War Games: The Truth behind the Government’s Sudden Attack on the Sports Betting Industry

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It thus appears that the assault on the betting companies, far from being a general money-laundering investigation, is actually part of the weaponisation of anti-corruption to take down the said well-moneyed senior politician.

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War Games: The Truth behind the Government’s Sudden Attack on the Sports Betting Industry
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For a government that has earned a reputation for its lackadaisical approach to matters corruption—other than those of its political enemies, that is—the resolute assault it has launched on the sports betting companies is intriguing. According to media reports, it was triggered by the Betting and Licensing Control Board writing to the Financial Reporting Centre asking for an investigation into money laundering in the industry. The Financial Reporting Centre is the unit of the Central Bank responsible for money laundering surveillance.

This sequence of events is suspect. Kenya’s reputation as a money-laundering hotspot is well documented, and the government has been under considerable pressure from the United States government to clean up for a long time. One of the deals underpinning the Jubilee government’s rapprochement with President Obama was a commitment to join the Egmont Group, a multinational collaborative platform for combating money laundering and terrorism financing. The 2019 International Narcotics Control Strategy Report submitted to the United States Congress by the country’s Bureau of International Narcotics and Law Enforcement Affairs notes that “despite some progress, Kenya has not fulfilled all of its commitments to join the Egmont Group.”

For a government that has earned a reputation for its lackadaisical approach to matters corruption—other than those of its political enemies, that is—the resolute assault it has launched on the sports betting companies is intriguing. According to media reports, it was triggered by the Betting and Licensing Control Board writing to the Financial Reporting Centre asking for an investigation into money laundering in the industry.

The point here is that it is difficult to believe—given America’s intense interest in this matter—that the betting industry has not been on the government’s anti-money laundering radar all along, especially because some of the industry’s foreign investors have been cited in connection with money laundering by the American government. This being the case, it stands to reason that the government could have opened an anti-money laundering investigation on the betting companies without much ado. Few would have been surprised. And it is quite unusual for sanctions to be meted out as part of an investigation, because as far as we know, there is as yet no determination that individual betting companies have been found culpable. Even money-launderers who are operating legally are entitled to due process.

It becomes even more confounding when the government speaks from both sides of the mouth. President Uhuru Kenyatta has been quoted maintaining that the investigation is purely a tax compliance matter: “Some betting firms have been hoarding taxes but we have managed to push them to pay and we will continue doing so. Those in the betting companies are our friends but we have to agree the government must get its rightful share to build cultural centres and other developments.” It is noteworthy that among the local investors profiled since the onslaught began are prominent establishment figures who featured prominently in Jubilee election campaign financing.

First, just how big is this industry? A government investigation reported the industry turnover at Sh200 billion a year. It is also reported that there are 12 million mobile phone-based betting accounts. But according to the Finaccess 2019 survey report, 1.9 per cent of adult Kenyans participate in sports betting. The Finaccess survey tracks financial inclusion, and is conducted once every two years by the Kenya National Bureau of Statistics in partnership with the Central Bank of Kenya and the Financial Sector Deepening (FSD) Trust. The 2019 survey was administered on a nationally representative sample of 11,000 households.

The figure of 1.9 per cent of adult Kenyans translates to 500,000 people. This in turn suggests that on average, punters spend Sh400,000 per year, or Sh33,300 per month on betting. The average annual wage in 2018, as reported in the Economic Survey, was Sh730,000. If we assume that the punters are spread across the income spectrum, that is, they are not concentrated in the high income groups, it would suggest that punters are spending more than half their income on gambling. This does not seem plausible.

It becomes even more confounding when the government speaks from both sides of the mouth. President Uhuru Kenyatta has been quoted maintaining that the investigation is purely a tax compliance matter

The Sh200 billion turnover is also inconsistent with the national economic data. The turnover of an industry corresponds to the gross output of a sector in the production accounts. A gross output of Sh200 billion would be significant considering that it is larger than that of “accommodation and food services” which captures the entire tourism, domestic, hospitality and restaurant services. As per the International Standard Industrial Classification (ISIC) the betting economy falls under the “arts, recreation and entertainment” sector. However, in the production accounts published in the Economic Survey, it is lumped together in a residual category (“other service activities”) although it is reported separately in the GDP figures (GDP is obtained by deducting intermediate inputs and indirect taxes from gross output). The gross output of “other service activities” in 2018 was Sh154 billion, less than the claimed turnover of betting alone, while the GDP for the “arts, recreation and entertainment” economy is only Sh10 billion. Either the statisticians have missed it altogether, or the Sh200 billion turnover figure is wrong.

SportPesa, reportedly the dominant firm in the industry, has published a statement disclosing its 2018 turnover as Sh20 billion. The only market share figure I could find is reported by the financial market information blog, The Kenya Wall Street, which puts SportPesa’s market share in 2016 at 76 per cent, and a small online survey of 300 respondents conducted by Linet Kwamboka of Data Science Ltd. in January 2019, in which two-thirds of the respondents gave SportPesa as their main betting platform (Betting In Kenya, a Menace or an Income?) These figures suggest an industry turnover in the Sh25 billion to Sh30 billion range.

Even this lower figure does not reconcile with the national economic data. As observed, using the “value-added” approach, the GDP is obtained by deducting intermediate inputs from gross output. In aggregate, these add up to about 45 per cent of gross output meaning that GDP is 55 per cent of gross output. That said, intermediate outputs vary a lot by sector, from 20 per cent in financial services to 70 per cent in manufacturing.

We do not know where the industry falls, but according to a data visualisation published in the Daily Nation titled A Gambling Nation: Betting dominates Kenya’s online searches, the betting industry spent Sh22 billion on advertising in 2018. Advertising expenditure would go into intermediate inputs. This outlay alone would reduce the industry’s GDP to no more than Sh8 billion, about three-quarters of the entertainment economy’s GDP. Still not credible. The advertising figures are a likely source of this inconsistency. According to the source, the total amount of spending on advertising in the country was Sh132 billion, and the main media on which it was spent were television, print and radio. But the turnover of the entire mainstream media industry in Kenya is no more than Sh25 billion, which begs the question where the Sh100 billion-plus was spent.

There is also another anomaly. Betting is said to have grown very rapidly; for instance, the Kenyan Wall Street blog reports a 2016 turnover of Sh56 billion which has supposedly grown to Sh200 billion, fourfold growth in two years. The rapid growth should reflect in the GDP. It does not. The gross output of “other services” increased by only Sh29 billion over the two years, and the entertainment sector GDP by only Sh2 billion. It does look like the statisticians are not capturing this growth in the national economic data.

An industry turnover of Sh25 billion-Sh30 billion together with the figure of 500,000 bettors estimated by Finaccess, translates to an average gambling expenditure of between Sh4,000 and Sh5,000 per month. This is a more plausible figure, and it is also in line with the figures reported by the respondents of Linet Kwamboka’s online survey. These figures are telling us that most punters spend between Sh500 and Sh1500 on betting a week—beer money, literary; the Managing Director of Kenya Breweries recently lamented that sports betting has become a serious competitor. By and large, the much-lamented gambling epidemic appears to be no more than substitution of one vice for another. No doubt there are gambling addicts, there always were, just as there are alcoholics.

SportPesa, reportedly the dominant firm in the industry, has published a statement disclosing its 2018 turnover as Sh20 billion. The only market share figure I could find is reported by the financial market information blog

We are still left with the Sh200 billion figure though. Where does it come from? The authorities have not been forthcoming on how the figure was arrived at. I see two possibilities: a purely technical accounting issue, and the money laundering dimension. The accounting issue is well illustrated by this account of The Broker, a punter who contributed to this discussion on twitter:

Img.1

Although The Broker gets the gist of it, his math is actually incorrect. His outlay of Sh10,000 generated three betting transactions totalling Sh22,000 (two Sh10,000 bets and one Sh2,000 bet) and he lost Sh7,000 not Sh8,000. The Sh7,000 is the betting company’s total revenue from his betting activity. Let us extrapolate: if we work with the Finaccess figure of 500,000 punters, the Sh. 200 billion turnover figure requires an average of Sh33,000 of betting transactions per person per month, which is within striking distance of The Broker’s figure of Sh22,000.

The Sh200 billion turnover is being buttressed by another figure, that of the 12 million betting accounts held with the mobile phone companies. If each account represented a unique customer, then those 12 million accounts would be held by half the adult population. We also know that the vast majority of bettors are the youth. The 12 million accounts figure is about the same as the total population of the 20-35 age group, which would suggest that virtually every young person has a betting account. That is a stretch and it stands to reason that some punters will have betting accounts with different companies. Still if we assume that each bettor has four accounts on average, this still translates to three million unique accounts, six times the Finaccess figure of 500,000. In its statement, SportPesa gives a figure of 700,000 visitors during the first half of 2019.

Img.2Part of this conundrum may be explained by another contribution to this debate on Twitter by one Jerry, who claims to have opened over 10,000 phantom betting accounts. Pressed to explain why, Jerry said that it was paid work. Why would betting companies pay people to open phantom accounts? The readily apparent reason is to inflate the size of the business and by so doing be able to pass off laundered monies as revenue, as would massive advertising and high profile sports sponsorships. It turns out that the betting epidemic may not be as big as it is made out to be and indeed, the Finaccess findings may be a more accurate reflection of the size of the industry.

According to a source quoted in the media, the Interior Ministry has “established that three politicians are involved in the business through proxies in the firms suspended on suspicion of money laundering”. The article goes on to report one of the issues under investigation as “whether a well-moneyed senior politician is among the shareholders of one of the big suspended firms through a company registered in a tax haven which is being used to launder money stolen from public coffers”.

No prizes for guessing who the well-moneyed senior politician is.

It thus appears that the assault on the betting companies, far from being a general money-laundering investigation, is actually part of the weaponisation of anti-corruption to take down the said well-moneyed senior politician. The vitriolic, lawless modus operandi accords with the manner in which this political warfare is being prosecuted generally. As is Uhuru Kenyatta’s statement—for the betting companies are indeed his friends who, unfortunately for them, have become collateral damage.

It is also telling, I think, that the onslaught on the betting companies has coincided with the high profile arrests and opening of prosecutions in the Arror and Kimwarer dams corruption case. Among the revelations from the investigation is that the money laundering trail led to London and Dubai—both are members of the Egmont Group.

From this we can infer that the Government was quite happy to cozy up to the industry until the William Ruto takedown opened a Pandora’s box. Hitherto, it mattered not whether the betting business is a Sh20 billion or Sh200 billion business, whether it was evading taxes, fuelling a gambling epidemic, or even laundering money for drug lords, human and wildlife traffickers and terrorist networks. You can get away with all that, and even buy protection for all of that, just as long as you steer clear of the struggle for power.

David Ndii
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David Ndii is a leading Kenyan economist and public intellectual.

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The Pitfalls of African Consciousness

It took time to digest Beyonce’s Black Is King. Conclusion: it fails to deliver us. Instead, it’s just another capitalist construction of the world.

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The Pitfalls of African Consciousness
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African American imaginings of Africa often intermingle with—and help illuminate—intimate hopes and desires for Black life in the United States. So when an African American pop star offers an extended meditation on Africa, the resulting work reflects not just her particular visions of the continent and its diaspora, but also larger aspirations for a collective Black future.

Black is King, Beyoncé’s elaborate, new marriage of music video and movie, is a finely-textured collage of cultural meaning. Though it is not possible, in the scope of this essay, to interpret the film’s full array of metaphors, one may highlight certain motifs and attempt to grasp their social implications.

An extravagant technical composition, Black is King is also a pastiche of symbols and ideologies. It belongs to a venerable African American tradition of crafting images of Africa that are designed to redeem the entire Black world. The film’s depiction of luminous, dignified Black bodies and lush landscapes is a retort to the contemptuous West and to its condescending discourses of African danger, disease, and degeneration.

Black is King rebukes those tattered, colonialist tropes while evoking the spirit of pan-African unity. It falls short, however, as a portrait of popular liberation. In a sense, the picture is a sophisticated work of political deception. Its aesthetic of African majesty seems especially emancipatory in a time of coronavirus, murderous cops, and vulgar Black death. One is almost tempted to view the film as another iteration of the principles of mass solidarity and resistance that galvanized the Black Lives Matter movement.

But Black is King is neither radical nor fundamentally liberatory. Its vision of Africa as a site of splendor and spiritual renewal draws on both postcolonial ideals of modernity and mystical notions of a premodern past. Yet for all its ingenuity, the movie remains trapped within the framework of capitalist decadence that has fabulously enriched its producer and principal performer, Beyoncé herself. Far from exotic, the film’s celebration of aristocracy and its equation of power and status with the consumption of luxury goods exalts the system of class exploitation that continues to degrade Black life on both sides of the Atlantic.

That said the politics of Black is King are complicated. The picture is compelling precisely because it appears to subvert the logic of global white supremacy. Its affirming representations of Blackness and its themes of ebony kinship will resonate with many viewers, but will hold special significance for African Americans, for whom Africa remains an abiding source of inspiration and identity. Indeed, Black is King seems purposefully designed to appeal to diasporic sensibilities within African American culture.

At the heart of the production lies the idea of a fertile and welcoming homeland. Black is King presents Africa as a realm of possibility. It plays on the African American impulse to sentimentalize the continent as a sanctuary from racial strife and as a source of purity and regeneration. Though the movie does not explicitly address the prospect of African American return or “repatriation” to Africa, allusions to such a reunion shape many of its scenes. No doubt some African American viewers will discover in the film the allure of a psychological escape to a glorious mother continent, a place where lost bonds of ancestry and culture are magically restored.

The problem is not just that such an Africa does not exist. All historically displaced groups romanticize “the old country.” African Americans who idealize “the Motherland” are no different in this respect. But by portraying Africa as the site of essentially harmonious civilizations, Black is King becomes the latest cultural product to erase the realities of class relations on the continent. That deletion, which few viewers are likely to notice, robs the picture of whatever potential it may have had to inspire a concrete pan-African solidarity based on recognition of the shared conditions of dispossession that mark Black populations at home and abroad.

To understand the contradictions of Black is King, one must examine the class dynamics hidden beneath its spectacles of African nobility. The movie, which depicts a young boy’s circuitous journey to the throne, embodies Afrocentrism’s fascination with monarchical authority. It is not surprising that African Americans should embrace regal images of Africa, a continent that is consistently misrepresented and denigrated in the West. Throughout their experience of subjugation in the New World, Black people have sought to construct meaningful paradigms of African affinity. Not infrequently, they have done so by claiming royal lineage or by associating themselves with dynastic Egypt, Ethiopia, and other imperial civilizations.

The danger of such vindicationist narratives is that they mask the repressive character of highly stratified societies. Ebony royals are still royals. They exercise the prerogatives of hereditary rule. And invariably, the subjects over whom they reign, and whose lives they control, are Black. African Americans, one should recall, also hail from the ranks of a service class. They have good cause to eschew models of rigid social hierarchy and to pursue democratic themes in art and politics. Black is King hardly empowers them by portraying monarchy as a symbol of grandeur rather than as a system of coercion.

There are other troubling allusions in the film. One scene casts Beyoncé and her family members as African oligarchs. The characters signal their opulence by inhabiting a sprawling mansion complete with servants, marble statues and manicured lawns. Refinement is the intended message. Yet the conspicuous consumption, the taste for imported luxury products, the mimicry of European high culture and the overall display of ostentation call to mind the lifestyles of a notorious generation of postcolonial African dictators. Many of these Cold War rulers amassed vast personal wealth while their compatriots wallowed in poverty. Rising to power amid the drama of African independence, they nevertheless facilitated the reconquest of the continent by Western financial interests.

Black is King does not depict any particular historical figures from this stratum of African elites. (Some of the movie’s costumes pair leopard skin prints with finely tailored suits in a style that is reminiscent of flamboyant statesmen such as Mobutu Sese Seko of the Congo.) However, by presenting the African leisure class as an object of adulation, the film glamorizes private accumulation and the kind of empty materialism that defined the comprador officials who oversaw Africa’s descent into neocolonial dependency.

Black is King is, of course, a Disney venture. One would hardly expect a multinational corporation to sponsor a radical critique of social relations in the global South. (It is worth mentioning that in recent years the Disney Company has come under fire for allowing some of its merchandise to be produced in Chinese sweatshops.) Small wonder that Disney and Beyoncé, herself a stupendously rich mogul, have combined to sell Western audiences a lavishly fabricated Africa—one that is entirely devoid of class conflict.

Anticolonial theorist Frantz Fanon once warned, in a chapter titled “The Pitfalls of National Consciousness,” that the African postcolonial bourgeoisie would manipulate the symbols of Black cultural and political autonomy to advance its own narrow agenda. Black is King adds a new twist to the scenario. This time an African American megastar and entrepreneur has appropriated African nationalist and pan-Africanist imagery to promote the spirit of global capitalism.

In the end, Black is King must be read as a distinctly African American fantasy of Africa. It is a compendium of popular ideas about the continent as seen by Black Westerners. The Africa of this evocation is natural and largely unspoiled. It is unabashedly Black. It is diverse but not especially complex, for an aura of camaraderie supersedes its ethnic, national, and religious distinctions. This Africa is a tableau. It is a repository for the Black diaspora’s psychosocial ambitions and dreams of transnational belonging.

What the Africa of Black is King is not is ontologically African. Perhaps the African characters and dancers who populate its scenes are more than just props. But Beyoncé is the picture’s essential subject, and it is largely through her eyes—which is to say, Western eyes—that we observe the people of the continent. If the extras in the film are elegant, they are also socially subordinate. Their role is to adorn the mostly African American elites to whom the viewer is expected to relate.

There are reasons to relish the pageantry of Black is King, especially in a time of acute racial trauma. Yet the movie’s mystique of cultural authenticity and benevolent monarchy should not obscure the material realities of everyday life. Neoliberal governance, extractive capitalism, and militarism continue to spawn social and ecological devastation in parts of Africa, the Americas, and beyond. Confronting those interwoven realities means developing a concrete, global analysis while resisting metaphysical visions of the world.

This post is from a new partnership between Africa Is a Country and The Elephant. We will be publishing a series of posts from their site once a week.

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Fractures and Tensions in the Anti-Racism Movement

Continental Africans have a lot to learn from their African American cousins in relation to race politics and white supremacy, not least because the phases of oppression developed by white supremacists simply keep mutating.

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Sometimes tensions between continental Africans and their African American brethren mount over trivial things due to their ostensibly deep-rooted differences. But really these differences ought not be so significant as to weaken the quest to confront and defeat racism wherever it is found. The deaths of Trayvon Martin, George Floyd and Breonna Taylor are all testimonies as to why white supremacy is so toxic.

African Americans are undoubtedly best equipped to read, analyse and deconstruct white supremacy, having been on the battle lines for over four hundred and fifty years. From centuries of slavery to Jim Crow segregation, systematic lynching, civil rights activism and disillusionment and the present age of mass incarceration, African Americans have seen it all, and continue to suffer the devastating effects of living in the trenches of institutionalised racism.

Being minorities in a white-dominated United States, contained in bleak urban ghettoes that are now undergoing steady gentrification, they also have to endure the traumas of constant police brutality. They are a community under siege on multiple fronts as their neighbourhoods are being decimated by fractured and disappearing families, targeted gentrification, mass incarceration, drug abuse and despair.

During the COVID-19 pandemic, death rates among African Americans have been disproportionately higher than other racial groups and this had led to considerable public outcry. Again, their position within American society demonstrates their obvious vulnerability. They are especially vulnerable not only to disease but also have relatively few means of redress.

The #BlackLivesMatter movement has received mixed reactions within the community as many argue that it lacks grassroots support and is being sponsored by white liberal donors and sympathisers. Since the era of Martin Luther King Jr., Malcolm X, Medgar Evers, Kwame Toure (formerly Stokely Carmichael) and Huey Newton, amongst others, there has not emerged a cohort of black leaders with the vision, commitment, sincerity and energy to match those illustrious forebearers.

After the civil rights movement of the 1960s, the assassinations of Malcolm and Martin, the penetration of radical activist groups by the FBI, and the heroin epidemic that blighted black neighbourhoods, the political momentum has arguably not been sustained.

Following the gains of the civil rights movement, Ronald Reagan and Bill Clinton further inflicted harm on the black community through a series of repressive legislation that birthed the age of mass incarceration, chillingly covered by the author and academic Michelle Alexander in her bestselling book, The New Jim Crow: Mass Incarceration in the Age of Colorblindness.

The scourge of crack cocaine must also be added to this already malevolent social equation. Families and neighbourhoods were denuded of health, social services, stability and financial viability. Knowledge, wisdom, and wholesome experience were substituted with fear, paranoia and degeneracy.

Hip hop as a cultural form was in its ascendency, having managed to crawl out of the neglected borough of the Bronx. Just like funk, R&B and other black music forms, this particular genre also aspired to be therapeutic, or at least soul-lifting. For a while, it represented the angst and perplexities of the “hood”, and subsequently, the righteous rage of the bona fide political rebel. But after experiencing phenomenal success, it fizzled out in an anti-climactic tsunami of bling, bombast, shallow consumerism and toxic misogyny.

For the first time in recent memory, blacks were able to produce a music utterly devoid of soul meant to soundtrack the last days of an era indelibly marked by Babylonian excess and decadence. In South Africa, droves of no-talent copycats, seduced by the grand spectacle flashed by mainstream American hip hop, discarded their indigenous traditions and sheepishly adopted American mannerisms.

Hip hop as a cultural form was in its ascendency, having managed to crawl out of the neglected borough of the Bronx. Just like funk, R&B and other black music forms, this particular genre also aspired to be therapeutic, or at least soul-lifting.

A source of tension between Africans and African Americans is the type of black people who are admitted to the United States to live and work. Radical black Americans claim that since the supposedly unfavourable experiences of white supremacists with radicals, such as the redoubtable black pioneer Marcus Garvey, who was originally from Jamaica, and activist Kwame Toure, who came from Trinidad and Tobago, white supremacists in the US have been careful with the type of people they admit from the Caribbean and Africa. An argument is made by black American radicals that only those who readily support and uphold the tenets and institutions of white supremacy are now being admitted.

Those same black American radicals point to the fact that the first black president of the United States, Barack Obama – who is not considered a foundational black American (FBA) by any stretch of imagination – whose father was of Kenyan origin, did nothing for black folk but went out of his way to benefit the LGBTGI community and immigrants, particularly from Mexico and other countries in the region. Obama, they claim, was not accountable to black America, and did not want to be accountable because he had not been made by black America.

Kamala Harris, the current vice presidential candidate of the Democratic Party, has a father originally from Jamaica and an Indian mother. According to radical black Americans, Harris is bound to create the sort of problems they encountered with Obama. They argue that the ever-calculating white media attempts to present her as a credible political representative of black America because she apparently looks like them. But all similarities end there. The white media is trying to foist Harris upon the black electorate with claims that she attended Howard University, a historically black college. But black radicals are not having any of it.

Instead, they (black radicals) dug into Harris’s past professional conduct and discovered that as an attorney working for the state of California, she notched an alarmingly high rate of prosecutions, convictions and incarceration of black people. Indeed these frightening rates could only please white supremacists and not black folk. So black radicals claim that if she is voted into power under a Joe Biden ticket as vice president, black folk are not to expect anything better from her. Before they give her their vote and support, they are asking her for tangible deliverables.

As of this point, Harris isn’t talking. Black radicals claim the days of black political representatives receiving their vote merely because of the colour of their skin are long gone. They now preach the mantra of “tangibles” to any prospective black political representative.

On the question of political and cultural representation in the present culture of hoods created by blacks, there does not appear to be a music genre that can inspire and transform lives as in the days of yore. Policies and strategies of integration pursued by US governments (which were meant to fool everyone) in the wake of the civil rights movement deceive no one. The partiality, inequality, division and bigotry are there for everyone to see.

However, the lives and accomplishments of Nat Turner, Harriet Tubman, Ida B. Wells, Marcus Garvey and a host of other pioneers are not always accorded their rightful place in the American public mind. And only “woke” folk know the true meaning of Pan-Africanism.

Black radicals claim the days of black political representatives receiving their vote merely because of the colour of their skin are long gone. They now preach the mantra of “tangibles” to any prospective black political representative.

On the African continent, befuddled by disemboweled US hip hop culture and the hype of #BlackLivesMatter, we attempt to take hesitant steps towards the blinding glare, unsure of how to act or how we would be received. The derelict hoods of the US seem to mirror our own mismanaged and misgoverned countries, which have variously been described as failed states.

African Americans, on the other hand, are filing into Africa at encouraging rates, tracing their genetic ancestry back to the motherland, often settling permanently along the coast of West Africa, longing to ingest melanin-rich air indefinitely. Away from relatively melanin-deprived political and cultural environments, they genuflect before myriad departed ancestors in rituals of ineffable spiritual communion: “We have come home, receive us steadily into the ceaseless warmth of your unfathomable bosom.”

Lost African youth, on the other hand, see these rejuvenated American returnees and hear the conflicted sounds of Lil Wayne, Kid Cudi, Fetty Wap, ASAP Rocky and Lil Nas X and sense Eldorado, a tortuous and deadly path of escape from the Western media-created images of their insufferable hell holes.

On both sides, namely black America and Africa, mass confusion often abounds, creating expectations that remain largely unfulfilled and hungers that are unlikely to be satiated.

First, in the recent past, the Western media manufactured false narratives about the Dark Continent. Now, children of both black America and Africa often neglect to discover the real truth about their heritage, leaving them both to re-live the unimaginable horrors of their past anew, only that this time around, they are locked in mental prisons entirely of their own making.

Undoubtedly, continental Africans have a lot to learn from their African American cousins in relation to race politics and white supremacy. In this regard, a great deal of humility and restraint is required. As things stand, African Americans have too much on their plate already. The chameleonic properties of racism are remarkably protean. American society was built on the prolonged enslavement of blacks, hence the rise of American Descendants of Slaves (ADOS) activism. Then there was Jim Crow oppression and the destructive infiltration of the civil rights movement and other strategies of containment and suppression specifically targeting blacks.

Under the auspices of ADOS and its growing drive for social transformation and reparations for black Americans due to the multiple forms of suffering caused by slavery, the term African American is becoming obsolete. Black American, once fashionable and then passé, is returning as the appropriate term to call peoples of African descent in the United States. This group makes it abundantly clear that they are quite distinct from Africans and people from the Caribbean based in the US – a distinction that justifies their quest to secure the fruits of reparations. While initially it might prove to be a compact strategy for obtaining reparations, it blurs the Pan-Africanist vision and makes it arguably less potent. In this regard, ADOS, or foundational black Americans (FBA), as they now prefer to call themselves, may be viewed as somewhat shortsighted and unduly materialistic, which throws out of the window the accomplishments of the likes of W.E.B. Dubois, Marcus Garvey and John Henrik Clarke.

On the African continent, befuddled by disemboweled US hip hop culture and the hype of #BlackLivesMatter, we attempt to take hesitant steps towards the blinding glare, unsure of how to act or how we would be received. The derelict hoods of the US seem to mirror our own mismanaged and misgoverned countries, which have variously been described as failed states.

The phases of oppression developed by white supremacists simply keep mutating, refining tactile mechanisms of suppression even before their intended victims are able to anticipate them. These strategies have had centuries of experimentation to improve themselves. And then they possess false ideologies to camouflage themselves. Black resistance, on the other hand, is often reactive, kept on its hind legs, forever on the defensive due to the fact that oppressive mechanisms are constantly shifting. This is black America’s greatest challenge – to move successfully from a defensive posture to a proactive one while at the same time keeping in mind the many lessons learnt from centuries of struggle.

The Haitian Revolution, which birthed the first independent black country in the Western hemisphere, continues to be a shining example. In order to accomplish its success, it had to purge itself of its internal doubters and dissenters.

Currently, as mentioned earlier, black America has very few, if any, leaders within its ranks that possess undeniable mass appeal and grassroots support. It is also fractured by numerous ideological factions and tendencies that make it difficult to identify and pursue a cohesive agenda. Furthermore, the various institutions of racism have become more diverse and entrenched.

Nonetheless, all is not lost; true revolution has always been the art of the impossible and black America generally has proven itself, time and again, to be uncommonly resourceful and courageous.

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Time Out for the Millennium Dam?

The countries involved in the Grand Ethiopian Renaissance Dam are three of the largest in Africa and they could all benefit from coordinated action instead of belligerence and a zero-sum game.

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The African Union-led process to arrive at a conclusive agreement on the filling and subsequent operation of the Grand Ethiopian Renaissance Dam (GERD) did not yield the expected results. Negotiations between legal and technical experts from Ethiopia, Egypt and Sudan to draw up a binding document concluded without consensus at the end of August. Meanwhile, with the heavy rains, the dam has started filling up naturally.

This is a major issue around which Ethiopians have unified as the country confronts existentialist challenges to its federal polity. Sudan perhaps hopes for the best deal as it grapples with internal upheavals, a reduction in oil prices and the aftermath of its separation from South Sudan. Egypt is the most stable of the three countries but seems to be trying to reach out to Libya and possibly Ethiopia.

The reaction in Egypt and Sudan is quite different from the #It’smydam social media campaigns in Ethiopia where nationalist fervour is being stoked, with idolised singer Teddy Afro creating a new song celebrating the GERD as Ethiopia’s pride. Egypt on the other hand is focusing on getting international opinion on its side and has released a short video in several languages.

Constructed in the western Benishangul-Gumuz Region, in 2011, the GERD was initially named the Millennium Dam. Scheduled for completion in 2022, its 6.45 GW generating capacity will make it the world’s seventh largest and the biggest dam in Africa.

The White Nile and the Blue Nile meet in Khartoum in Sudan and flow into Egypt. The White Nile rises in the Great Lakes of East and Central Africa. The Blue and shorter Nile rises in Lake Tana in the Amhara region of Ethiopia and flows to Khartoum, gathering waters from the Dinder and Rahad rivers. Ethiopia had never previously tapped the Nile resources while Sudan has the Al-Ruṣayriṣ and Sannār dams on the Blue Nile. Egypt on the other hand has almost its entire economy dependent on the River Nile having harnessed it through the gigantic Aswan dam project.

Egypt opposed the GERD from the start as it felt that its share of the Nile waters would be diminished. Up until now the waters of the Nile have flowed unchecked through Sudan to Lake Nasser. Ethiopian reports indicate that the GERD will have no impact on annual flows to Egypt but this issue has yet to be resolved and even though the differences between the two countries have been narrowed down, mutual suspicion between the two populous neighbours has been revived, with Ethiopia fearing that Egypt might sabotage and undermine the project.

Moreover, both Egypt and Sudan fear that water flows will reduce to below their requirements during the dry season, negatively impacting the two countries. For its part, Ethiopia believes that it has patiently negotiated but that a common position on dry season flows is difficult to achieve. The country wants to start operating the dam as filling the reservoir may take up to five years, and considers that the dry season issues can be dealt with concurrently. And although the three countries seem to agree that , how to deal with this issue is now in contention.

The GERD project was of particular interest to the former prime minister of Ethiopia, the late Meles Zenawi, who foresaw that environmental factors would prevent Ethiopia from obtaining the support of the OECD (Organisation for Economic Co-operation and Development) countries and the World Bank. Ethiopia therefore opted to fund GERD fully from its own resources. Borrowing from the Indian example, the country issued development bonds, tapped into the diaspora and obtained small domestic contributions.

The US$4.8 billion GERD contract was awarded to Salini Impregilo of Italy. The novel fundraising contributed US$3 billion while China provided US$1.8 billion for the turbines. Ethiopia has committed nearly 5 per cent of its GDP to GERD and is therefore unlikely to want a delay or disruption in the completion of the project.

Meles had often discussed Ethiopia’s development with me when I was India’s ambassador to Ethiopia and the African Union from 2005 to 2009. He showed great interest in India’s large hydroelectric projects and we discussed the country’s engagement with its diaspora for development, Diaspora Bonds, and India’s terms of engagement with donors following the sanctions that were imposed after the 1998 nuclear tests. Our discussions on the Great Ethiopian Railway plan also focused on carbon-neutral electricity and since Ethiopia is not endowed with coal or oil (unlike Sudan and Egypt), harnessing water resources has become the country’s focus. The smaller dams on the Tekeze, Finchaa, Gilgel Gibe, Awash and Omo rivers are the trendsetters; located in the south of the country and close to Kenya, Djibouti and South Sudan, power exports are under consideration.

Ethiopians recall that Egypt has since the 4th century monopolised the use of the Nile waters and used the edicts of the Coptic Church, whose Patriarch was shared with Ethiopia until 1959, to curtail their usage. Ethiopia’s development plans include exploiting the waters of the Nile but the Nile Basin Initiative and its regional version, the Eastern Nile Technical Regional Office, have been unsuccessful in convincing the partners that the project is technically sound and beneficial to all. In 2015, the three countries signed a declaration to abide by “the spirit of cooperation”. Egypt in particular thinks this spirit is lacking; it has committed itself to a negotiated process but the caveat that “all options remain on the table” causes anxiety in Ethiopia.

Egypt seeks access to 55 bcm of water as its Nile rights in perpetuity, based on its increased share in the 1959 treaty with Sudan. The 1929 Anglo-Egypt Treaty ceded almost all Nile rights to Egypt, overlooking the rights of British colonies in Sudan, Uganda, Kenya and Tanganyika as well as Ethiopia. Technical discussions indicate a flow of 49bcm to Egypt, slightly more than the 48bcm provided in the 1929 Treaty. Ethiopia refuses to agree to a fixed figure and wants ad hoc decisions since droughts may not allow for such flow levels. It views the Egyptian stand as based on colonial treaties that were signed without Ethiopia’s agreement. Egypt is facing serious challenges due to pollution, climate factors and a growing population but it too did not consult Ethiopia when it built its giant Aswan High Dam. Technical discussions have taken place in various forums for the last eight years where Sudan has been assiduously wooed by both its neighbours. The need for a dispute settlement mechanism on technical issues remains a core concern.

In June 2018 Prime Minister Abiy Ahmed made a visit to Cairo and pledged mutually beneficial regional cooperation on the basis of scientific evidence. Although the confidence-building visit seemed to have been a success, by 2019 Prime Minister Abiy was talking of mobilisation to counter Egyptian threats. Between November 2019 and February 2020, US President Donald Trump interceded with an initiative, pursued by Treasury Secretary Steven Mnuchin, but it reached an impasse with Ethiopia leaving the final negotiations. Egypt approached the United Nations Security Council (UNSC) in June 2020 but the UNSC was informed that the AU had been seized of the matter. It is this AU effort which now needs to succeed but is faltering. Meanwhile, the US has suspended aid to Ethiopia in an effort to coerce the country to accommodate Egypt.

Ethiopia and Egypt are well placed to lead an African development process through the use of water resources for mutual benefit. An inclusive regional perspective which will bring the Nile basin countries into a sharing of knowledge and resources is vital for having sufficient water, energy, and food for all Nile Basin countries. Egypt depends on the river for 97 per cent of its water requirements and Ethiopia has invested in its future. Can the northeastern quadrangle of Africa create a new paradigm? The concept of an Eastern Development Corridor proposed by former Egyptian Assistant Foreign Minister Mohamed Higazy seeks multipronged cooperation for a development corridor with dams, irrigation, riverine transport, power distribution and access for Ethiopia to Egypt’s Mediterranean ports.

While Egypt is committed to negotiations and will seek the best possible deal, its occasional jingoism is matched by Ethiopian exhilaration. Egypt believes that the other countries have failed to restrain Ethiopia from filling the dam. This is why the country keeps returning to the UN Security Council option and, with Sudan, will play the Arab card unless the AU is able to bridge the differences.

It appears that South Africa as AU Chair is keeping the UNSC from acting until the AU effort is complete. Meanwhile it is a challenge to South Africa’s ability to keep aligned AU members whose animosity pre-dates the AU itself. Egypt’s twin identities as a member of the Arab League and as an African country are being tested. The country persuaded the League to support its stance when it went to the UNSC in June. Djibouti and Somalia, two Arab countries which border Ethiopia, did not concur fully with the resolution while Ethiopia remains critical of “blind” Arab League support for Egypt. The Arab Committee that was formed to follow up on the matter at the UNSC includes Morocco, Jordan, Saudi Arabia and Iraq, countries which now have weightier US-Israel-Arab matters at hand.

Has Ethiopia outrun Egypt as Emad Al-Din Hussein wrote in the Al-Shorouq newspaper? Or is Egypt running too fast for its own good? Its options may expand if belligerence is replaced with a more visionary approach rather than a zero-sum game. Will Egyptian calm meet with the appropriate Ethiopian response?

The countries involved in the GERD are three of the largest in Africa and they could all benefit from coordinated action. The GERD exists and will function as Ethiopia has determined. Meanwhile the mistrust is deepening as Ethiopia feels empowered to alter past equations. The dry season issue is best left to a technical committee which will monitor the real situation during every season and work on actual water flows. If trust is restored and public belligerence diminishes, the mutual interests of the three countries may be served. With their large populations and growth indicators, Egypt, Ethiopia and Sudan could be the growth segment of Africa. The immediate need is to avoid diplomatic disagreements from degenerating into physical conflict. In the medium term the three countries could be persuaded to be partners for growth and in this Kenya can play a positive role by engaging all parties, since in 2021 South Africa will cede the AU leadership to DR Congo, a country which may not have an abiding interest in the issue.

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